Power of the Purse

As you know, the Legislature passed a budget bill in the final hours of the session, but failed to pass a tax bill.

The implementation of this budget bill, which takes effect July 1, will depend on the use of broad discretionary powers by the Governor.

This is the first time the State budget has been completely in the MS format (Planning. Programming Budget System). This means the operating and capital improvement programs approved by the Legislature are in one budget bill. The State Constitution provides that Capital Improvement Program appropriations must receive a 2/3 vote to pass. Since these votes were not forthcoming, only the operating expenditures in the budget have been authorized.

Now the Governor must do one of these:

1. Call a special session in hopes of obtaining a revenue package.

2. Veto specific items in the budget.

3. Simply withhold the funds for specific items in the budget.

When the Governor's message to the Legislature detailed the state's anticipated budget deficit, recommended Some of the shortage should be recovered by reducing programs in 4 Departments --

Education

Health

Social Services

University of Hawaii

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Your local League president has copies of all State LWV testimony and letters.